Now, Indian pharmaceutical majors also face the African challenge

Cipla and Aurobindo among major companies whose March quarter sales in the institutional segment fell close to 50%

While Indian pharmaceutical majors continue to face severe pricing pressure in the US market, Africa has been a growth story. However, Indian companies are now facing headwinds here, too, especially in the institutional sales or tender business.

In the listed space, five major companies — Cipla, Aurobindo, Strides Sashun, Ipca Labs and Ajanta Pharma — cater to the anti-malarial and anti-retroviral (ARV) tender business. Sales for this segment came down significantly in the March quarter and in 2017-18. Delay, funding cuts for organisations such as the Global Fund and pricing pressure have been compounded by a rise in raw material costs